(Infocast News) The dry bulk freight market indices for most of 2017 have followed a similar pattern as last year, although at a significantly higher level, Pacific Basin Shipping (02343) says in its Third Quarter 2017 Trading Update. The typically weak start to the year was followed by a stronger second quarter, but a seasonal mid-year decline affected index rates in the third quarter.

Stronger demand growth across most cargo categories drove a marked increase in rates over the last few weeks of the quarter. However, due to the lag between securing cargoes and performing voyages, and with most of our fourth quarter revenue days already covered, these stronger rates will have a marginal effect on our 2017 results.

The group generated average Handysize and Supramax daily TCE earnings of US$8,130 and US$9,350 per day net in the third quarter, representing an improvement of 15% and 27% respectively compared to the same period in 2016.

The group's year-to-date average Handysize and Supramax daily net TCE earnings increased 25% and 41% year on year to US$8,010 and US$9,060, outperforming the BHSI and BSI spot market indices by 19% and 8% respectively.

As at 10 October 2017, the group had secured cover for the final quarter of 2017 as follows:
- 70% of the group's 11,170 contracted Handysize revenue days at around US$8,890 per day net
- 79% of the group's 5,750 contracted Supramax revenue days at around US$10,600 per day net

The group had secured cover for 2018 as follows:
- 14% of the gorup's 36,600 contracted 2018 Handysize revenue days at around US$7,690 per day net
- 32% of the group's 12,030 contracted 2018 Supramax revenue days at around US$9,640 per day net